HB 488 -- TAX CREDIT FOR IDLE REDUCTION TECHNOLOGY

SPONSOR:  Wasson

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Job Creation and Economic Development by a vote of 12 to 0.

Beginning January 1, 2007, this bill authorizes an income tax
credit equal to 50% of the cost to purchase and install idle
reduction technology on a class 8 truck.  A "class 8 truck" is
defined as a heavy duty vehicle with a gross vehicle weight in
excess of 33,000 pounds.  The maximum amount of the tax credit is
$3,500 per truck.  The tax credit may be taken against individual
and corporate income tax, corporate franchise tax, and express
company tax liability.  The tax credit is not transferable or
refundable, but can be carried forward and claimed for up to
three taxable years.

The provisions of the bill will expire two years from the
effective date.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of Unknown
in FY 2008, FY 2009, and FY 2010.  No impact on Other State Funds
in FY 2008, FY 2009, and FY 2010.

PROPONENTS:  Supporters say that large semi-trucks idle an
average of eight hours a day.  Auxiliary power units (APUs) are
now available for trucks which allow the driver to run all the
things that the engine can run, but without the engine being
turned on.  They allow a driver to run the heat or air
conditioning while stopped overnight, but the engine doesn't have
to run, too.  This saves a tremendous amount of fuel and greatly
reduces emissions.  Unfortunately, APUs are very expensive.  The
tax credit will cover at least 50% of the APU's cost, which will
provide a great incentive.  Without this incentive, the APUs will
remain cost-prohibitive.

Testifying for the bill were Representative Wasson; Larry Morgan,
Gencom, Incorporated; Missouri Motor Carriers Association;
Owner-Operator Independent Drivers Association; Missouri Chamber
of Commerce and Industry; and Department of Natural Resources.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:19 am